A theory of innovation: Market transition, property rights, and innovative activity

Victor Nee, Jeong Han Kang, Sonja Opper

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

The aim of this paper is to specify a theory to explain why transitions to a market economy cause a shift to a higher level of innovation. Marketization increases the power of economic actors relative to political actors, increases inter-firm competition, creates new opportunities for entrepreneurship, and subsequently motivates innovative activity. For our empirical application, we focus on China's transition economy, which offers a broad range of institutional environments to examine the relation between market transition and increasing innovative activity by entrepreneurs and firms.

Original languageEnglish
Pages (from-to)397-425
Number of pages29
JournalJournal of Institutional and Theoretical Economics
Volume166
Issue number3
DOIs
Publication statusPublished - 2010 Sep 1

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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